You want to buy a new TV and are considering two options. The first is you will pay $1,500 today. The second option is to make a payment plan where you will make monthly payments of $100 for two years, starting at the end of this month. You have been quoted a rate of 6% p.a. compounding quarterly.

Let us consider the payment plan first

How frequently are payments made?

How frequently does the rate compound?

Do these two match? What do we need to do?